Preheat oven to 350°F (180°C). Line a muffin tin with paper liners.
In a bowl, whisk together the flour, baking powder, salt, and lime zest.
In another bowl, cream together the softened butter and sugar until light and fluffy. Add the eggs and vanilla extract and mix well.
Gradually mix in the lime juice, milk, and tequila. Gently fold in the dry ingredients until just combined.
Mix until you have a smooth batter. Fill the muffin liners about ¾ full.
Bake for 18-20 minutes, or until golden brown and a toothpick inserted into the center comes out clean.
While the cupcakes are baking, prepare the frosting: In a bowl, beat the cream cheese and powdered sugar until smooth. Add the heavy cream and a splash of lime juice, and mix until creamy.
Let the cupcakes cool completely before frosting. Garnish with lime frosting and a lime slice on top.
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